DAILY NEWS

Daily News – 9th May 2018

Top Story

Singapore condo resale prices up 0.6% in April but volume dips 1.7%: SRX
Condo resale prices in Singapore edged up 0.6 per cent to a 12-month high in April over March, but volume of sales dipped by 1.7 per cent, according to flash data from real estate portal SRX Property released on Tuesday. Resale prices of non-landed private properties are up by 5.4 per cent in the first four months of the year, and 9.5 per cent higher than a year ago, the data showed.
http://www.businesstimes.com.sg/real-estate/singapore-condo-resale-prices-up-06-in-april-but-volume-dips-17-srx
https://www.straitstimes.com/business/property/condo-resale-prices-up-but-sales-dip
https://www.todayonline.com/singapore/private-home-prices-06-cent-april
https://www.srx.com.sg/research/47992/private-resale-non-landed-prices-up-06-in-april-volume-slides-down-by-17

Singapore Economy

Global connectivity will boost Singapore’s economy, create jobs
Singapore’s transport network will be enhanced to connect the city-state with the rest of the world, Coordinating Minister for Infrastructure and Minister for Transport Khaw Boon Wan said on Tuesday. Good connectivity will boost the economy, create good jobs for Singaporeans and raise their quality of life, he added in the Transport ministry’s addendum to the President’s Address.
http://www.businesstimes.com.sg/government-economy/global-connectivity-will-boost-singapores-economy-create-jobs

Singapore Real Estate

Elias Green condo targeting en bloc
Home owners at the sprawling Elias Green condominium in Pasir Ris may be the next to be on the collective sale market – but some observers wonder if their reserve price may be too high. If a buyer is willing to cough up S$780 million, owners at the 419-unit development could each walk away with S$1.7 million to just below S$2 million. Alan Loh, the chairman of the collective sales committee, told The Business Times that the 516,877 sq ft development will begin collecting signatures on May 12. But he said it is likely that they will reach the required 80 per cent consent since 83 per cent of owners have already paid up fees meant for expenses such as lawyers and property valuation.
http://www.businesstimes.com.sg/real-estate/elias-green-condo-targeting-en-bloc

Ava Towers to launch en bloc sale bid with reserve price at S$248m
The owners of Ava Towers are putting their freehold condominium development up for tender in their first attempt at a collective sale. Their reserve price of S$248 million for the site along Ava Road in the Balestier area translates to a land rate of about S$1,374 per square foot per plot ratio (psf ppr), said marketing agent ERA Realty Network. Given the site’s high development baseline, there is no development charge payable for redevelopment up to a gross plot ratio of 2.8.
http://www.businesstimes.com.sg/real-estate/ava-towers-to-launch-en-bloc-sale-bid-with-reserve-price-at-s248m
https://www.straitstimes.com/business/property/ava-towers-condo-up-for-collective-sale-at-248m

All new private developments must offer bicycle parking
In another push towards a car-lite society and to encourage people to use a bike for commuting, the Government will now require all new private developments to provide bicycle parking spaces. For instance, residential developments will generally need to have one bicycle parking space for every four or six units, depending on the zone the property is built in.
https://www.straitstimes.com/singapore/transport/all-new-private-developments-must-offer-bicycle-parking
https://www.channelnewsasia.com/news/singapore/all-new-developments-to-have-bike-parking-spaces-under-new-10213966

Hide from Trump in a humble Singapore shophouse
As a hiding place from US President Donald Trump’s trade war against China, a cozy corner of Singapore’s real estate holds much appeal. A two- or three-story terrace close to the city’s central business district, home quite often to a wine bar or gastro pub at street level with a massage spa or music lounge tucked away upstairs, has been in bigger demand this year than industrial sheds.
https://www.straitstimes.com/business/property/hide-from-trump-in-a-humble-singapore-shophouse

Companies’ Brief

Perennial Q1 profit falls 86.7% in absence of one-off gain
The absence of a one-off gain from the partial divestment of TripleOne Somerset last year has resulted in an 86.7 per cent fall in first-quarter net profit to S$5.14 million for Perennial Real Estate Holdings. Revenue in the three months ended March 31 was S$14.95 million, down 26.1 per cent in the absence of revenue from TripleOne Somerset, which Perennial now accounts for as an associate.
http://www.businesstimes.com.sg/companies-markets/perennial-q1-profit-falls-867-in-absence-of-one-off-gain
https://www.straitstimes.com/business/companies-markets/lack-of-one-off-gain-hits-perennials-q1-net-profit

Ascott forms JV with Huazhu Hotels, CJIA
CapitaLand’s serviced residence arm, The Ascott, is setting up a joint venture with Nasdaq-listed Huazhu Hotels Group and apartment rental firm CJIA Apartments Group to expand its Citadines brand in China. With a market capitalisation of US$10.4 billion, Huazhu has the third largest market share in China’s midscale hotel segment with a total portfolio of over 380,000 hotel rooms.
http://www.businesstimes.com.sg/real-estate/ascott-forms-jv-with-huazhu-hotels-cjia
https://www.straitstimes.com/business/companies-markets/ascott-forms-jv-with-huazhu-hotels-cjia-apartments-to-grow-citadines-in

Hiap Hoe posts S$1.3m Q1 loss despite 94.5% surge in revenue to S$49.3m
Changes in development properties of negative S$15.9 million and higher selling expenses due to the sale of units in Marina Tower in Melbourne, as well as a foreign exchange loss of S$4 million due to the weaker Australian dollar eroded results for property developer Hiap Hoe for its first quarter. Changes in development properties was just negative S$5.1 million a year ago. Other expenses increased by S$4.6 million to S$12.5 million in Q1 2018, mainly due to selling expenses for Marina Tower and operating costs for the group’s hotels.
http://www.businesstimes.com.sg/companies-markets/hiap-hoe-posts-s13m-q1-loss-despite-945-surge-in-revenue-to-s493m
https://www.straitstimes.com/business/companies-markets/hiap-hoe-sees-13m-q1-loss-despite-945-jump-in-revenue-to-493m

Centurion Q1 profit slips 15% to S$9.13m on expiry of facility lease
Centurion Corp posted a 15 per cent fall in its first quarter profit to S$9.13 million, on the back of a lease expiry of its Westlite Tuas facility, which ceased operations in December 2017. The drop in the accommodation developer’s profit came on the back of reduced revenue. For the quarter ended March 31, 2018, the top line fell by 17 per cent – S$6 million – to S$30.1 million from the previous year.
http://www.businesstimes.com.sg/companies-markets/centurion-q1-profit-slips-15-to-s913m-on-expiry-of-facility-lease
https://www.straitstimes.com/business/companies-markets/centurion-q1-profit-drops-15-on-expiry-of-facility-lease

Oxley signs lease deal for Dublin site
Oxley Holdings has entered into an agreement for lease with Córas Iompair Éireann (CIE), allowing Oxley to develop a 1,963 hectare site in Dublin. The site comprises part of the lands at Connolly Station, Dublin 1, Oxley said in a filing to the Singapore Exchange on Tuesday. The term of the agreement is seven years and must be exercised by Oxley by the end of the fifth year of the term.
http://www.businesstimes.com.sg/companies-markets/oxley-signs-lease-deal-for-dublin-site

VIEWS, REVIEWS, FORUM & Others

Post-industrial capitalism calls for new economic model for Singapore
Global and domestic trends over the past several years indicate that Singapore’s successful half-century of state-driven, export-oriented, multinational-led, manufacturing-focused economic growth has – or is soon to – run its course.
http://www.businesstimes.com.sg/opinion/post-industrial-capitalism-calls-for-new-economic-model-for-singapore

Singapore’s heritage shophouses may be a safe haven for smart money
As a hiding place from US President Donald Trump’s trade war against China, a cozy corner of Singapore’s real estate holds much appeal. A two or three-story terrace close to the city’s central business district, home quite often to a wine bar or gastro pub at street level with a massage spa or music lounge tucked away upstairs, has been in bigger demand this year than industrial sheds.
http://www.businesstimes.com.sg/real-estate/singapores-heritage-shophouses-may-be-a-safe-haven-for-smart-money

More must be done to reduce noise from construction work
The National Environment Agency (NEA) said that companies can tap the $10 million Quieter Construction Fund to purchase or lease quieter construction equipment or noise-control equipment, or implement innovative noise-reduction solutions (Tools available to construction firms for noise control; May 2).|
https://www.straitstimes.com/forum/letters-in-print/more-must-be-done-to-reduce-noise-from-construction-work